Since the beginning of this week, EUR/USD is in a sideway movement. A unidirectional trend is not observed. The currency tests key support and resistance levels: 1.11600 and 1.12600, respectively. The market is waiting for additional drivers. Today, economic reports from the United States are at the center of attention.
Indicators signal the strength of buyers. The price has fixed above 50 MA and 200 MA.
The MACD histogram has begun to rise and is above the signal line, which indicates the growth of EUR/USD.
Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which also gives a signal to buy EUR/USD.
If the statistics from the US are positive, a correction to the 1.11500-1.11250 mark may develop on the EUR/USD currency pair.
An alternative may be the growth of the EUR/USD quotations to the round level of 1.13000.
When tracking a position, one should use a trailing stop.
At the moment, the bearish sentiment prevails on GBP/USD. In the Asian trading session, the pound lost more than 70 points in price. The currency found support at 1.28600. The round level of 1.29000 is already a "mirror" resistance. We are waiting for statistics from the USA.
The news background on the UK economy is calm today.
The price is located below 50 MA and 200 MA, which indicates the strength of sellers.
The MACD histogram has fixed in the negative zone and below the signal line, which signals a further drop in GBP/USD.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a correction on GBP/USD.
If economic reports from the US are positive, the downward trend in GBP/USD may continue. The target level of movement is the round level of 1.28000.
An alternative option may be the growth of GBP/USD to the level of 1.29300.
Yesterday correction was observed on USD/CAD. The Canadian dollar weakened against the US dollar by more than 80 points. This is due to a sharp drop in quotations of "black gold" (- 4.79% oil WTI). At the moment, the key trading range is 1.34600-1.35350.
The publication of important economic reports from Canada today is not planned.
Indicators do not send accurate signals. The price is between 50 MA and 200 MA.
The MACD histogram is located in the positive area, but below the signal line, which gives a weak signal to buy USD/CAD.
Stochastic Oscillator has reached the oversold zone, the %K is below the %D line, which gives a weak signal to sell USD/CAD.
We recommend opening positions from key levels.
If the price consolidates below the support level of 1.34600, you need to look for entry points to the market to open short positions. The immediate goal for profit taking is 1.34000.
Alternative option. If USD/CAD overcomes the resistance level of 1.35350, the correction of the Canadian dollar may continue. The movement is tending potentially to 1.35500-1.36000.
Sales prevail on the USD/JPY currency pair. At the moment, the yen added more than 70 points. The currency overcame the mark of 111.500, which is a "mirror" resistance. The nearest support is at 110.900. The currency of Japan is supported by optimistic data on inflation in the country.
It is necessary to pay attention to the news background on the US economy.
The price has fixed below 50 MA and 200 MA, which indicates the bearish sentiment on USD/JPY.
The MACD histogram has begun to decline and moved to the negative zone, which signals a further drop in USD/JPY.
Stochastic Oscillator is located in the oversold zone, the %K line crossed the %D line. There are no signals at the moment.
We recommend looking for entry points to the market in order to open short positions. The movement is tending potentially to the support level of 110.300. When tracking a position, one should use a trailing stop.We recommend you to get acquainted with the daily overview of the news feed.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.